The person who buys the option is called the buyer, and the person who sells the option is called the seller; the buyer is the assignee of the right, that is, the right party; and the seller is the obligator who must fulfill the buyer's exercise of the right, that is, the obligated party.

The buyer of an option is equivalent to buying an insurance and agreeing on the execution conditions. When an event occurs that meets the claim conditions, you can ask the other party to execute according to the agreed conditions, which is equivalent to applying for compensation from the customer. Selling options is equivalent to an insurance company selling insurance and collecting insurance premiums. If something happens to the insured party (the agreed conditions are met), compensation needs to be paid according to the agreed conditions. Selling an option means that when the trading pair requires exercise of the option, you must exercise the option as stipulated in the contract.

Extended information:

The difference between options and equity:

Equity (limited liability company) and shares (joint-stock company) are both shareholders’ qualifications based on their qualifications. An owner's right. Simply put, getting equity means that you are already a shareholder of the company.

"Option" is a right, which is the right granted by the company to the incentive objects to purchase a certain number of shares of the company at a predetermined price and conditions within a certain period in the future. This right may be exercised after the company is listed. , may also be exercised prior to listing. Simply put, getting options only shows that you may be a shareholder of the company. ?

Visually speaking, equity represents shareholders, while options exist more with an incentive mission.

Baidu Encyclopedia-Options